August 4, 2022
mayank
Kotak Equity Arbitrage Fund Guidance
NAV Growth : Rs 32.1415
NAV IDCW Monthly : Rs 11.2070
Suitable For Which Investors ?
“Arbitrage funds invest in equity shares and derivatives, and earn their returns through the price differential between a stock and its futures. You can expect to earn better returns than what you would get from a bank account.
They are usually suitable to park your money for a period ranging between three months to a year. However, we believe that liquid funds, which have a similar risk-return payoff, are a better alternative for most investors for such a time frame. Arbitrage funds may have some appeal for those who are in the highest tax bracket, given the preferential tax treatment of these funds.
The risk of incurring a loss in these funds over the said time frame is low but they do not guarantee returns or safety of capital.
Remember, these funds usually deliver low returns which are only marginally higher than your bank account. They are not suitable if your aim is to build wealth in the long run.”
Fund’s Investment Strategy :
The scheme aims to generate income through arbitrage opportunities emerging out of pricing anomaly between the spot & futures market; and also through deployment of surplus cash in fixed income instruments.
Fund Manager :
— Hiten Shah
Education : Mr. Shah is a Masters in Management Studies (Finance) from Mumbai University.
Experience : Prior to joining Kotak Mahindra Mutual fund, he was associated with Edelweiss Asset Management for more than 8 years as a CoFund manager and Chief dealer in equities segment. He was also associated with Edelweiss securities Ltd. as low risk arbitrage trader for more than 3 years.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. No of Cheques | 10 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. Balance (Rs) | 1,000 |
| Lock-in Period | Not Applicable |
| Exit Load | 0.25% for redemption within 30 days |
Basic Details
| Fund House: | Kotak Mahindra Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 6.89% |
| Benchmark: | NIFTY 50 Arbitrage TRI |
| Riskometer: | Low |
| Type: | Open-ended |
| Assets: | Rs 25,789 Cr |
| (As on 30-Jun-2022) | |
| Expense Ratio: | 0.44% |
| (As on 30-Jun-2022) | |
| Risk Grade: | Below Average |
| Return Grade: | Above Average |
| Turnover: | 497.25% |
Kotak Equity Arbitrage Fund Guidance Trailing Returns (%)
| YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y | |
| Kotak Equity Arbitrage Direct-G | 2.59 | 0.01 | 0.12 | 0.29 | 0.94 | 2.02 | 4.22 | 4.8 | 5.61 | 5.96 | — |
| CCIL T Bill Liquidity Weight | 1.16 | 0.01 | 0.11 | 0.24 | 0.48 | 1.03 | 2.01 | 2.61 | 3.27 | 3.64 | — |
| Hybrid: Arbitrage | 2.24 | 0 | 0.09 | 0.26 | 0.83 | 1.75 | 3.7 | 4.44 | 5.28 | 5.8 | — |
| Rank within category | 3 | 8 | 1 | 7 | 2 | 2 | 5 | 5 | 4 | 4 | — |
| Number of funds in category | 25 | 26 | 25 | 25 | 25 | 25 | 25 | 22 | 17 | 15 | 0 |
Kotak Equity Arbitrage Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| Kotak Equity Arbitrage Fund | 4 star | Jan-13 | 4.22 | 4.8 | 5.61 | 0.44 | 25,789 |
| Nippon India Arbitrage Fund | 4 star | Jan-13 | 4.13 | 4.79 | 5.75 | 0.34 | 10,809 |
| Tata Arbitrage Fund | 5 star | Dec-18 | 3.93 | 5.06 | — | 0.29 | 8,386 |
| Edelweiss Arbitrage Fund | 5 star | Jun-14 | 4.3 | 4.96 | 5.76 | 0.35 | 6,993 |
| Axis Arbitrage Fund | 5 star | Aug-14 | 4.44 | 4.8 | 5.65 | 0.31 | 5,303 |
Portfolio Analysis
| Number of Stocks | 159 |
| Top 10 Holdings (%) | 38.77 |
| Top 5 Holdings (%) | 29.16 |
| Top 3 Sectors (%) | 0.53 |
| Portfolio P/B Ratio | 2.46 |
| Portfolio P/E Ratio | 16.57 |
| Avg Credit Rating | GOI/Cash |
Kotak Equity Arbitrage Fund Guidance by Chanakya :
Apply Online :
Stock Research Reports :
https://www.analysislibrary.com/
NFO Guidance :
https://sahifund.com/category/nfos/
Chanakya’s Mutual Fund Guidance on Youtube
https://www.youtube.com/c/ChanakyaNiPothi
Join Chanakya’s Telegram Channel @
https://t.me/chanakyanipothi